X
<

American Express in 1H17: What Investors Need to Know

PART:
1 2 3 4 5 6 7 8 9 10
Part 2
American Express in 1H17: What Investors Need to Know PART 2 OF 10

Insights On American Express’s Net Interest Income

Rise in total interest income

American Express (AXP) reported net interest income of $3.02 billion in 1H16 and $3.03 billion in 1H17. Its total interest income rose to $4.0 billion in 1H17 from $3.9 billion in 1H16, reflecting a marginal 3% rise. This rise was mainly due to higher interest income from bank deposits in 1H17.

Insights On American Express’s Net Interest Income

Interested in PYPL? Don't miss the next report.

Receive e-mail alerts for new research on PYPL

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

In 1H16, American Express garnered interest income of $64 million from bank deposits, compared with $142 million in 1H17. The company incurred total interest expenses of $861 million in 1H16 and $965 million in 1H17, reflecting a 12% rise. This increase was mainly due to its average long-term debt rising and higher interest rates.

Enterprise value-to-revenue multiple

American Express has a trailing-12-month enterprise value-to-revenue multiple of 5.7x. Other consumer financial companies’ (XLF) multiples are as follows:

  • PayPal Holdings (PYPL): 6.0x
  • MasterCard (MA): 13.1x
  • Total System Services (TSS): 3.2x

In the next part of this series, we’ll look at American Express’s US consumer services division.

X

Please select a profession that best describes you: